How can you protect yourself against commodity price risk

Assignment Help Finance Basics

Reference no: EM133223732

Question: If you have to buy 10,000 barrels of WTI oil for your chemical company once every three months, how can you protect yourself against commodity price risk? Assume that today is August 31, and that you have agreed to pay the spot price today for the shipment in 3 months. In other words, you always know the price three months before you actually pay it.

Reference no: EM133223732

Questions Cloud

Create a digital marketing plan : Your task is to create a digital marketing plan (approx. 15-18 slides) for your hotel/hospitality company on social media platforms such as Facebook.

Explain the planning function of a project : There is a lot of time, effort, and money spent on the planning function of a project. Some argue that there are more drawbacks to planning then benefits.

How would you protect yourself against the wheat price : How would you protect yourself against the wheat price going against you? You sell approximately 50,000 bushels of wheat (say SRW wheat) every month except

How project progress is managed : Does your organization manage portfolio(s) of project? If yes, is this handled by a PMO. If no, briefly describe how projects are managed

How can you protect yourself against commodity price risk : If you have to buy 10,000 barrels of WTI oil for your chemical company once every three months, how can you protect yourself against commodity price risk?

How does one view of the bible impact christian life : How does proper interpretation of the Bible impact Christian living? How does one's view of the Bible impact his or her Christian life

Write an expanded paid searchad appropriate for business : Write an expanded paid search ad appropriate for the business objective and searcher intent.

How much money will be in the account after you made : savings account at an annual rate of 9.26 percent, compounded monthly. How much money will be in the account after you made the last payment?

What were the results of the study : What were the results of the study? What is your opinion on how much culture should or does impact ethical decision-making

User Account

All Pages